The MTA highlights

Gov. David Paterson, Assembly Speaker Sheldon Silver and Senate Majority Leader Malcolm Smith just held a press conference announcing a deal on the MTA.

Here are the highlights:

The entire MTA region will have an equal payroll tax (there will not be a graduated payroll tax as previously discussed. School districts will be reimbursed for what they pay out in payroll taxes by the state, which will be dealt with in next year’s budget, to the tune of an estimated $60 million. (That’s right, you upstaters, you will be paying for the MTA, passed-through the school districts). The payroll tax is expected to generate $1.5 billion in revenue

$400 million in payroll tax revenue per year will be “dedicated” to an MTA capital plan for the next two years, when the legislature will take up the issue again, expected to leverage $6 billion.

$260 million will be raise from fee increases on cars, drivers’ licenses, auto rentals, and a $.50 surcharge on taxis.

$700 million will be raised from MTA fare increases. The single-ride subway fare will be $2.25. The weekly and monthly passes will see a 10% increase this year, a 7.5% increase in 2011, and another 7.5% increase in 2013.

The remaining revenue from the payroll tax ($1.1 billion), in addition to the fare and fee increases will be used to pay for operating expenses and covered the anticipated shortfall announced by the MTA last week.

The legislature will take up a road and bridge plan in October.

Silver and Smith said they expect both houses to vote on the measure, using a message of necessity, tomorrow.